Glenmark Pharmaceuticals posted around a 36.28 percent increase in its consolidated net profit to Rs 220.3 crore on Friday for the fourth quarter ended 31st March 2020. The Mumbai-based drug firm had reported a net profit of around Rs 161.66 crore for the corresponding period of 2018-2019.
Its gains on the home front are yet another positive. Product sales grew around 13.6% in Q4 FY20 from a year ago, as according to the Indian Pharma Market report of March as well.
Additionally, The company’s drug pipeline has been rising; it has about 45 drugs pending approval. To that extent, out-licensing programs, such as the one with Hikma Pharmaceuticals Plc to commercialize nasal spray c, is a positive. It is expected to receive upfront and milestone payments for the drug.
Glenmark is also lowering its R&D expenses, but this could take a while. “The sustained spending on R&D and acquisition of intangible assets are areas of concern. The company has guided to no increase or possibly some decrease in R&D spending and CAPEX/intangibles ahead. This and growth in the base business should help generate free cash-flows,” said analysts at Nomura Financial Advisory and Securities (India) Pvt. Ltd.
The company’s consolidated revenue for the quarter rose around 7.96 per cent to Rs 2,767.48 crore as against Rs 2,563.47 crore a year ago, Glenmark Pharmaceuticals told in a regulatory filing. For the financial year 2019-2020, the company has reported a consolidated net profit of around Rs 775.97 crore as against around Rs 924.99 crore in 2018-2019.
The company’s consolidated revenue for the year 2019-2020 that rose to around of Rs 10,640.96 crore as against of Rs 98,65.46 crore recording over the previous corresponding period. “Our growth of momentum sustained in the fourth quarter despite the COVID-19 pandemic situation and also challenging generic business environment around markets that globally,” the Glenmark Pharmaceuticals Chairman and the MD Glenn Saldanha told.
The company’s India, Europe, as well as Latin America regions performed well during the quarter, as he added.
“Our sustained performance has been because of the continuous efforts of all of our employees across the world as well. Our manufacturing facilities have been operated continuously likewise facilitated the uninterrupted supply of medicines to operating the markets,” as Saldanha added.
Its board recommended a dividend of Rs 2.5 per share of the face value of Re 1 each (250 percent) for the financial year 2019-20.